International Journal of Economics and Financial

Issues
ISSN: 2146-4138

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International Journal of Economics and Financial Issues, 2015, 5(Special Issue) 190-197.

2nd AFAP INTERNATIONAL CONFERENCE ON ENTREPRENEURSHIP AND BUSINESS MANAGEMENT (AICEBM 2015),
10-11 January 2015, Universiti Teknologi Malaysia, Kuala Lumpur, Malaysia.

How do We Measure Corporate Social Responsibility of Islamic

Banks through their Business Processes and Oriented Outcomes?

Abdullah Rajeh Ali Alamer1*, Hussin Bin Salamon2, Muhammad Imran Qureshi3,
Amran Mohammed Rasli4
1
Faculty of Management, Universiti Teknologi Malaysia, Skudai 81310, Johor, Malaysia, 2Faculty of Islamic Civilization, Universiti
Teknologi Malaysia, Skudai 81310, Johor, Malaysia, 3Faculty of Management, Universiti Teknologi Malaysia, Skudai 81310, Johor,
Malaysia, 4Faculty of Management, Universiti Teknologi Malaysia, Skudai, Johor, Malaysia. *Email: raaabdullah2@live.Utm.My

ABSTRACT
There are some academic efforts that have tried to measure corporate social responsibility (CSR) in Islamic banks (IBs) practices. But there is very
lack in measuring the CSR of IBs through their operations not through their oriented outcomes. This article has suggested Musharakah and equity as
new items to fill the important gap in measuring field of IBs’ CSR. In this work, the Musharakah is social and economic tool in IB finance and it is
for the customers. Whilst the equity is a type of investments in IBs, in which the bank is as shareholder in other business organizations. It is coming
from the deeper understanding of Shari’ah principles (Maqasid Shariah) in Islamic business world. With both cases (Musharakah with customers or
equity with investors) IBs will share other in loss and profit and they are more far from Riba (interest rate) as in conditional banks. Not enough that
IBs are undergo for Islamic law (Fiqhi) to reach the best level of CSR but they should have investments and financing that based on broad utility for
the society. That is not mean that oriented-outcome side is not important of the IB’s CSR.
Keywords: Corporate Social Responsibility, Islamic Banks, Musharakah, Islamic Law
JEL Classifications: M00

1. INTRODUCTION the macro economy (Dusuki, 2008c). Business processes in IBs

Many of academic and thinkers have several criticisms in Islamic
banking (IB) practices especially the social and economic impacts
on the society. The Islamic financial principles proscribe riba
(interest rates), gharar (ambiguity), maisir (gambling) and some
other financial products like intoxicants and pork (Rosly, 2010).
These rules differentiate IB practices from conventional banking
practices. Jaufeerally (2011) added two more obligations to
IBs. The first is the rule of profit and loss sharing (PLS) and
the second is real asset-backed financing. In addition, Khan and
Bhatti (2008) stated that the principles of Islamic finance are
based on participation in an actual economy and social justice.
IBs’ values are not only reflected in their banking transactions
but they can be observed through their impacts on society and
can never be separated from the ethical considerations of society
(Usmani, 2002). This relates the IBs’ practices to the reach of
social performance. The considerations of the IBs for the society
can be measured through the implementations of the corporate
social responsibility (CSR).
2. PRIOR STUDIES OF CSR’S MEASURING
IN IB
Various studies indicate that CSR measurement for IBs are
essentially developed based on Maqasid Shariah basis, which is
classified into four broad zones. The first is how processes of the
business have affected the safety of the Islamic community. The

International Journal of Economics and Financial Issues | Vol 5 • Special Issue • 2015
 Alamer, et al.: How do We Measure Corporate Social Responsibility of Islamic Banks through their Business Processes and Oriented Outcomes?
second is how IBs help Muslims accomplish their religious duties.
The third is compliance of the processes of the IBs with Islamic
values, in particular dealing justly with different parties. Fourth
is how the CSR doings help to educate the Islamic community.
While the literature usually provides evidence that Islam worries
the concept of CSR, there is still a lack of research concerning
how CSR is measured for IBs from new perspectives through of
IBs. This study investigated eighteen studies of this kind were
performed from 2005 to 2013 in which they reported different
findings and provided varies recommendations. In addition, most
of those studies tended to give equal weights of all measurements
except Mohammed et al. (2008) whilst all of them do not build
any dimension on business process to explore the real CSR.
Dimensions that related to business process may be specified
from business nature of IBs and Maqasid Shari’ah concept of IB
and finance. Table 1 shows a summary of all 18 selective studies
on IB in CSR.
3. NEW VIEW OF CSR MEASURING IN IBS
There has been remarkable progress in IBs’ CSR measurement
both at conceptual and operational levels. What is still lacking,
however, is a measurement system that separates process-based
and outcome-oriented CSR measures. The next section attempt to
contribute toward developing the index of CSR practices through
to explain segregation of CSR dimensions in two parts.
This research will advocate segregation of CSR dimensions
employing the notion of process and outcome. The rationale for
such division can be deduced from Islamic narrow view (Fiqh)
and wide view (Maqasid Shari’ah) categorization of unlawful acts.
Al-Misri (1997), in his book (Umdat al-Salik), states that unlawful
doings are of two-types: One is originally unlawful in itself, that
mean the sacred law forbids it from the outset; the another type is
unlawful because of an extrinsic reason. A doing originally lawful
can become unlawful if an unacceptable extrinsic circumstance
becomes linked with it. It means that any doing is a lawful act when
it and its circumstances are lawful. This understanding eliminates
the pushy notion of ‘ends justifying the means’ that prevails in
the modern competitive business world. By connecting means
to the process and the accomplished action to the outcome, it is
possible to gain the critical significance of the trustworthiness of
the process for the validity of outcome in the Islamic structure
of good deeds. To enable the appreciation of this process-output
separation with unequal weights for IB CSR measurements, this
research offers explanations based on two parts; social activities
and sharing (e.g., charity) and environment on the first side of
outcomes while human resources, investment, and R and D on
the process side as the second part.
3.1. Elective Dimensions of CSR Measuring Based the
New View
3.1.1. Charity as good example of social activities and sharing
IB stands on opposite of the interest; an opposite of interest is
charity. From a sociological viewpoint, charity raises brotherhood
and interest eliminates or weakens the spirit of brotherhood.
Charity is the most universal element in CSR performance in both
west and Islam worlds. From the Islamic perspective, however,
International Journal of Economics and Financial Issues | Vol 5 • Special Issue • 2015
the health of the highly encouraged act of charity is conditional.
“O you who believe! Spend of the good things which you have
(legally) earned …. and do not aim at that which is bad to spend
from it …” (Surah al-Baqarah. p. 267). Even if given out of
legitimate earnings, charity may be unsuccessful. “O you who
believe! Do not render in vain your charity by reminders of your
generosity or by injury, like him who spends his wealth to be seen
of men … ” (Surah al-Baqarah. p. 264). Yusuf Ali in his note to
this verse holds that “to “Rob Peter to pay Paul” is not suitable
in Islam. Islam will have nothing to do with tainted property. Its
economic code requires that every gain should be honest and
honorable.” The principal importance of the process can be easily
documented from the two Hadiths quoted below which underline
the importance of how earnings are earned.
Ibn Mas’ud narrated that the messenger of Allah (peace be upon
him) said: “The feet of the son of Adam shall not move from
before his lord on the day of Judgment, until he is asked about
five things: About his life and what he did with it, about his youth
and what he wore it out in, about his wealth and how he earned it
and spent it upon, and what he did with what he knew” (Tirmidhi
and Ibn Hiban).
The messenger of Allah (peace be upon him) mentioned (the case)
of a man who, having journeyed far, is dishevelled and dusty, and
who spreads out his hands to the sky saying, “O Lord! O Lord!”
while his food is haram (unlawful), his drink is haram, his clothing
is haram, and he has been nourished with haram, so how can (his
supplication) be answered (Sahih Muslim)?
The essences of the above discussion is that for the charity or
any activities for society to be valid and acceptable, the process
of making of which charity is given and the process of generous
charity should be pure and decent.
3.1.2. Environment is the second elective dimension
According to Dusuki and Dar (2005), comes from Shari’ah’s
guidelines to interweave Islamic financial businesses (IBs) with
genuine concern for ethically and socially responsible events,
while at the same time elimination participation in illegal activities
that are harmful to social and environmental well-being. All
authors, except Mohammed et al., 2008, who wrote about CSR
in IBs (Table 1) agreed that IBs must do not invest in any projects
that may harm the environment.
3.1.3. HR as one of the business process dimensions
Employee rights and satisfaction can be taken from the Qur’anic
verses.
“O you who believe! Eat not up your property among yourself
unjustly; but let there be among you trade by mutual consent.…”
(Surah al-Nisa’. p. 29).
“Woe to al-Mutaffifin (those who give less in measure and weight
[decrease the rights of others]). Those who, when they have to
receive by measure from men, demand full measure, and when
they have to give by measure or weight to men, give less than
due” (Surah al-Mutaffifin. p. 1-3).
 Alamer, et al.: How do We Measure Corporate Social Responsibility of Islamic Banks through their Business Processes and Oriented Outcomes?

Table 1: Selected studies with measures of CSR in IBs

Authors Data Issue Theory or Statistical Focus of study Findings Countries
hypothesis tests
Dusuki and 1500 Adopting 4 Stakeholders apply Regression Stakeholders’ CSR factors are Malaysia
Dar (2005) respondents conventional equal importance perceptions of CSR evidenced as one of
of 2 dimensions of to the CSR factors the important criteria
full‑fledged CSR practice by when making a in IB’s stakeholders
IBs making Islamic judgement about banking selection
perspectives for patronising IBs decisions
everyone
Sairally 250 Learning from Social Content Adopting Wood’s Almost half of the 19 countries
(2005) respondents the experiences of commitment analysis (1991) model of respondents adopt
socially responsible emphasised by the CSR measurement a “defensive”
investment funds Islamic economics as a basis of approach to CSR
literature is being assessing the CSR
neglected within of IFIs
the practise of
Islamic finance
Maali et al. 29 IBs Develop a The concepts of Content The actual social Social issues are not 16 countries
(2006) benchmark set of accountability, analysis disclosures of major concern for
social disclosures social justice, and contained in the most IBs
appropriate to IBs ownership annual reports
Haniffa 7 IBs Developed IBs are considered Content Measured Many IBs put Arabian
and Hudaib a research as having ethical analysis discrepancy little effort into Gulf region
(2007) instrument identity because existing between communicating (6 countries)
based on their the foundation the communicated their values in a
understanding of their business and the ideal ethical consistent manner
of the Islam as philosophy is identity EII
well as the extant closely tied to
Islamic and CSR religion
literature to reflect
the ideal ethical
Identity
Mohammed 6 IBs Use the present IBs should have Content Quantify the No single bank is 5 countries
et al. conventional high indictors of analysis Maqasid into able to realize high
(2008) measures and Maqasid al‑Shariah measurable IB performance in all
developing other perspective performance performance ratios
performance indicators
measures
Hassan and 7 IBs Explore any The concepts of Content Develop (CSR) IBs put little effort 7 countries
Harahap discrepancy that accountability, analysis disclosure index into disclosing their
(2010) exists between the social justice, and based on the Islamic CSR activities
CSR disclosure ownership business ethics
index and CSR framework
activities in IBs
Aribi and 21 IBs Examine the Islamic business Content Actual difference of Significant Arabian
Gao (2010) and 21 influence of Islam should have analysis CSR between IBs differences in the Gulf region
conventional on CSR disclosure accountability and non‑IBs level and the extent (6 countries)
banks in IBs to God and of the disclosure
fulfilment of social between them
objectives
Abdul 1 IB Attempts to look Legitimacy theory. Content Measure CSR’s Show that IBs Malaysia
Rahman at the issue of how Ownership, analysis disclosure by using prefers to disclose
(2010) far does BIMB accountability adopted checklist themes associated
disclose and apply and social justice for 14 years with employees,
Islamic values in concepts. Islamic product, and service
reporting its CSR concept (Tauhid) contributions
Unity of ALLAH and community
involvement
Contd...

International Journal of Economics and Financial Issues | Vol 5 • Special Issue • 2015
 Alamer, et al.: How do We Measure Corporate Social Responsibility of Islamic Banks through their Business Processes and Oriented Outcomes?

Table 1: Contiuned...
Authors Data Issue Theory or Statistical Focus of study Findings Countries
hypothesis tests
Farook 47 IBs Develop and test a Political economy, Regression Applying the Level of social and 14 countries
et al. theoretical model legitimacy and principles of political freedom
(2011) of the determinants stakeholder systems‑oriented and the proportion
of IBs’ social theories, as well as theories of investment
disclosures agency theory account deposits
to total assets
are significant
determinants of IBs’
CSR disclosure
Yusuf and Interview 4 The CSR practices Islamic CSR in IBs Content Examine the CSR program Indonesia
Bahari experts in in IBs should should alleviate analysis criteria and Islamic should pay more
(2011) IBs be based on poverty instrument of CSR attention to the
responsibility toward the creation importance of social
Khalifah and of sustainable capital in society
Maslahah economic
development
Nor and 800 Evaluating To link the idea Statistical Explore level CSR In fact, IBs are Malaysia
Asutay respondents the customers’ of CSR with instrument concept, sustainable still more driven
(2011) perceptions and sustainable SPSS compliancy in IBs to commercial
the expectations of development of IBs through asking their orientation making
CSR, sustainable in the competitive customers it less possible
compliancy and market to being socially
performance responsible for the
cause of seeking
Gods pleasure
Musa 1500 To explore the General ethics, Statistical How do the It can be fairly Malaysia
(2011) respondents relationship behaviour of instrument current practices assumed that the
between the Islamic employees, SPSS in Malaysian IFIs practices of the
business ethical treatment of mirror the Islamic IBs under study
norms and IBs employees and ethical norms in do conform to the
practices code of ethics business? Islamic ethical norm
in business based
on the perception of
executives working
in the banks
concerned
Zubairu 4 IBs IBs are expected to Accountability Content Examining the Poor social Saudi
et al. portray a high level and justice to analysis social reporting disclosure practices. Arabia
(2012) of CSR in their Allah (SWT) and practices of IBs in
social reporting society Saudi Arabia
practices
Abbasi 100 Compare the CSR There is no Content CSR practices are There is little Pakistan
et al., respondents practices in Islamic significant analysis mostly related withdifference between
(2012) and conventional relationship the Islamic terms CSR practices
banking between CSR like social justiceof the Islamic
practices and IB and accountability and conventional
banking.
El Mousaid 8 IBs Analyse the There is (no) linear Content Assess the The results revealed GCC
and Boutti relationship relation between analysis relationship an important lack countries
(2012) between ROA and CSRDI between CSRD and in information
performance IBs performance as disclosed regarding
indices (ROA) measuredw by ROA CSR
and (ROE) with the and ROE
CSR disclosure
Contd...

International Journal of Economics and Financial Issues | Vol 5 • Special Issue • 2015
 Alamer, et al.: How do We Measure Corporate Social Responsibility of Islamic Banks through their Business Processes and Oriented Outcomes?

Table 1: Contiuned...
Authors Data Issue Theory or Statistical Focus of study Findings Countries
hypothesis tests
Samina 6 IBs Analysis There is (no) Correlation The CSR of Strong positive Bangladesh
(2012) relationship correlation analysis financial institutions correlation between
between CSR between CSR can be divided the amount CSR
expenditure and spending and IBs’ into two groups expenditure and the
IBs’ deposit deposit collection, as mandatory and sample IBs’ deposit
collection, investment made recommended and investment
investment made and profitability amount and the
and profitability. profit
Rashid 16 IBs Investigate Incomplete Content Two layers of CSR IBs’ commitments to 8 countries
et al. customer‑centric link between analysis involvement in IBs. basic Islamic rules
(2013) CSR in IBs managerial The commitment fall far behind the
motivation and toward Allah (SWT) average
actual involvement and the commitment
of IBs with CSR toward others
activities
Kamla and 19 IBs Fills a gap in Critical theory, Content Existence of Reported disclosures 11 countries
Rammal both social social accounting analysis gap between the are lack of detailed
(2013) accounting and and Islamic rhetorical religious information
Islamic accounting accounting and ethical claims regarding schemes
literatures with its of IBs on poverty
emphasis on social eradication or
justice and poverty enhancing social
eradication justice
CSR: Corporate social responsibility, EII: Ethical identity index, GCC: Gulf cooperation council, ROA: Return on assets, ROE: Return on equity, IBs: Islamic banks

Trade means exchange; giving and receiving also implies
exchange. Employers and employees are exchange parties of
an economic and social relationship. The above verses, by
implication, make it obligatory for both parties to performance
in the exchange relationships in a fair and equitable style. Since
the organisation (the employer) generally holds control over
employees, the implications of the verses are construed more to
highlight the employer’s responsibility to preserve the rights of
employees.
On the operative side, according to Usmani (2002), being “Islamic”
is not sufficient to design the processes and transactions based on
Islamic principles. It is also necessary that the system of IBs and its
staff mirror Islamic features, quite distinguished from conventional
management. People working in any organisation are now its
most critical resource. The amount of criticality of this resource
is probably very high in the IB scheme where employees need to
understand modern conventional banking and IB and finance. In
fact, the excellence serves of IBs utterly depend on the intellectual,
mental, and spiritual development of its employees. If it happens
that this development is cooperated for costs savings and at the
same time financial help to students is offered in the formula of
scholarships, then the question of justice of the process for the
validity of the outcome becomes similarly relevant. It is because
cost savings is a process of producing a surplus or income, and
offering scholarship is a kind of charity, an outcome (income)-
based activity. Thus, the action (i.e., offering scholarship) can
be considered a violation of the well-known maximum “charity
begins at home,” which is consistent with Islamic philosophy. The
equality of the process is a worry for the validity of an action or
an outcome.
3.1.4. Investment as one of the business process dimensions
Febianto (2012) states that bigger difficulties arise from the nature
of specific risks and because of the profits and losses sharing idea
of Islamic financing and investment (Musharakah and Mudarabah),
IBs face greater complexity in recognizing and treatment risks
compared with conventional banks. According to Yusof et al.
(2010), it is well identified that, in conventional markets, there is
a difference between the real economy and the financial industry
(including the banking sector) in which debt-based investing is
safe and money flows without any conversion in reality. Originally,
IB was a scheme of immense importance for the awareness of
the objectives of Islamic economics. One of these purposes is
derived from the Qur’anic instruction “wealth must not circulate
only between the rich ones among you” (Surah al-Hashr: 7).
Mohammad and Shahwan (2013) examine the synchronization
of the goals of Islamic economics and the objectives of IBs in the
light of Maqasid Shariah. Their study ensures on deficiency of
IB processes in addressing Islamic economic goals in a holistic
manner. This deficiency is largely attributable to the investment
role of IBs as Hannan plainly acknowledges:
Most of the IBs operate on Bai-Murabaha, Bai-Muazzal, Bai-
Salam, Istisna hire purchase/leasing mode of investment (i.e., IBs
always prefer to run on a mark-up/guaranteed profit basis having
Shariah coverage). For this reason, sometimes the conventional
economists and general people failed to understand the real
difference between IB and conventional banking.
Investment is the key characteristic that sorts IB immediately and
conspicuously distinct from conventional banking. Mudarabah
and Musharakah are the best modes of investment that can

International Journal of Economics and Financial Issues | Vol 5 • Special Issue • 2015
 Alamer, et al.: How do We Measure Corporate Social Responsibility of Islamic Banks through their Business Processes and Oriented Outcomes?

bring supportable qualitative changes in financial and money Table 2: List of authors who connected kinds of
markets. Since IBs are not going into these modes, the process investment and finance with CSR level
of guaranteeing a viable income through reliance upon mark- Author/s Year Title
up based investments naturally creates the banks subject to the Aggarwal and 2000 IBs and investment financing
criticism that they mostly aim at profit and profitability aims Yousef
rather than the objective saturated with higher social content Siddiqi 2006 IB and finance in theory and practice:
(Mohammad and Shahwan, 2013). Even if IBs pay Zakat, spend A survey of state of the art
money on charitable activities, and make other social gifts based Asutay 2007 Conceptualization of the second best
on income from mark-up based investments, they will not be solution in overcoming the social failure of
able to stop the criticism. Accepting this fact means recognizing IB and finance: Examining the overpowering
that the purity of the process of earning is an earlier and more of homoislamicus by homo‑economicus
Khan and 2008 Development in IB: A financial
significant question for the earning-based actions to be recognized
Bhatti risk‑allocation approach
as sufficiently good. Shahinpoor 2009 The link between IB and micro‑financing
Chazi and 2010 Risk exposure during the global financial
More specific, investment in IBs has a massive impact on Syed crisis: The case of IBs
society and many critics have called on IBs to redirect their Ahmed 2010 Global financial crisis: An Islamic finance
investment in line with societal welfares. There are many perspective
experts and authors who have printed about preferences of Abdul 2010 Islamic microfinance: An ethical alternative
types of investments that have a positive impact on the society Rahman to poverty alleviation
and economy as well. Equity-based financing, like Musharakah Febianto 2012 Adapting risk management for PLS
and Mudarabah, represents the idea core of Islamic financing. financing of IBs
Cebeci 2012 Integrating the social maslaha into Islamic
In Musharakah, IBs share financing and management with their
finance
customers and share the profits built on pre-agreed upon ratios. Nihar and 2011 Shariah based banking and profit or loss
Losses, if any, are shared based on their primary contribution Subramanyam paradigm
in the business. In Mudarabah, on the other hand, the capital CSR: Corporate social responsibility, IBs: Islamic banks, PLS: Profit and loss sharing
owner (investors) entrusts their capital with the Mudarib who
acts as an entrepreneur, and who is generally selected based on and PLS in IBs is still small and debt-finance modes are always
his/her expertise. According to Yusof et al. (2010), the authors bigger. Under this situation, IBs cannot play a significant role
believe that IBs and financial institutions can mirror the objective in supporting the stability and sustainability of health in the
of Islam in the whole economy. Table 2 has some authors who international financial system.
theorized that there is a positive relationship between the kind
of investment and a society’s welfare. Nihar and Subramanyam To be more specific, Musharakah investment has significant and
(2011) concluded that the opening of gates for IBs in a way direct impacts on social lives. Aggarwal and Yousef (2000) found
would ensure responsible contribution (encourages partnerships that the shifting in IBs to make profits by sharing their investments
of business persons with the bank) of the people in investment would create jobs for new generations. In the reality of the business
activity as the concept of IBs is based on equity sharing in various world, Yunus (2007) observed that financing of a small business
businesses with a profit or loss agreement which would in turn has the ability to change the lifestyle and behaviour of millions of
positively power on economic development. poor people around the world. He argued that IBs in developing
countries have chances to share with small businesses, such as
Empowerment of communities in IBs comes from equity farmers and villagers, to translate into better rural communities
investment, especially Musharakah investment with poor and reduce poverty. However, Ahmed (2010); Shahinpoor
families and small businesses. For further explanation, Asutay (2009) advise that to fulfil justice in Islam, the financier and the
(2007) considered that Musharakah and Mudarabah are equity adventurers/businessmen must share in profits and losses if they
finance, whilst Murabahah is famous for debt-finance in IBs. happen. For this purpose in Islam, it is known that one of the basic
Although the concept of Islamic economics prefers equity principles of finance is “no risk, no gain.” Yet, greater importance
financing toward value-added in the economic system, the put on equity does not necessarily mean that debt modes should
direction toward debt financing is rather contrary. Equity finance be removed altogether.
brings economic development and social welfare. Farook
et al. (2011); Kamal et al. (2010) stated that equity finance is Musharakah is the best mode in the Islamic investment of IBs.
in line with goals of Islamic finance (MS), specifically justice, It is worth mentioning that, according to Siddiqi (2006), modes
health, economic results, and social equality. Using debt as of finance that depend on sharing are favoured in the Islamic
an investment tool has failed and is one of the reasons for the literature on IB and finance because the sharing principle
global financial crisis. Therefore, Ismal (2010) emphasised enhances justice in society. Unlike the reality, Chazi and Syed
that re-examining the style of the investment and redirecting (2010) advise that Islamic financing is built on the premise that
it to equity financing instead presents a better position with a bank should not be lending its own money, but should instead
debt financing. According to Abdul Rahman (2010), Islamic be sharing risks with their partners. As opposed to a less risky
microfinance should include both credit finance (debt) and position of a lender, IBs approach their investment activities from
equity financing. Also, Ahmed (2010) concluded that equity a partnership perspective.

International Journal of Economics and Financial Issues | Vol 5 • Special Issue • 2015
 Alamer, et al.: How do We Measure Corporate Social Responsibility of Islamic Banks through their Business Processes and Oriented Outcomes?
3.1.5. R and D as one of the business process dimensions
R and D is often considered equivalent with advanced corporate
that is on the cutting edge of a new economy to innovate new
products or advance old ones. In this research, as Mohammed
et al. (2008) mentioned, it is very important towards future
invention development. High expenses on R and D indicate that
the IBs build their strategy and products on a systematic basis and
benefits from scientific offerings, renewing interest of the future
ambitions of the community.
4. CONCLUSION AND
RECOMMENDATIONS
The many authors believe that IBs can mirror the objective of Islam
in the whole economy. Investments of IBs have a huge impact on
society and many criticizes have called on IBs to redirect their
investing in line with societal welfares. So this article has been
supported on the importance review of kind of investment and
financing in IB and trying to increase ratio of Musharakah and
Equity in IBs’ balance sheets to reach their CSR. This article has
been in the suitable index has the important items under every
dimension of CSR in IBs. As well as, the equal weights of all
dimensions in measuring of CSR in IBs while every dimension
has different impacts on the society so this article recommend to
create index that meet that by using appropriate weights of the
dimensions. Now, the need into collection of items is good step
to meet that target above in the future.
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International Journal of Economics and Financial Issues | Vol 5 • Special Issue • 2015